Texas Pacific Land Corporation (TPL) AI Stock Analysis

Texas Pacific Land Corporation specializes in land and resource management and water services and operations. Its Land and Resource Management segment oversees approximately 880,000 acres, owning a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) on around 85,000 acres, a 1/16th NPRI on roughly 371,000 acres, and about 4,000 additional net royalty acres in western Texas. The segment also generates revenue from easements, commercial leases, and materials sales like caliche. The Water Services and Operations segment provides water sourcing, produced-water gathering and treatment, infrastructure development, disposal solutions, tracking, analytics, and well testing to Permian Basin operators, alongside holding water royalties.

TPL achieved a 5-year revenue CAGR of 21.4% from FY2020 to FY2025. Annual revenue expanded from $451.0M in FY2021 to $798.2M in FY2025, despite a 5.4% dip in FY2023. Net income rose from $270.0M in FY2021 to $481.4M in FY2025, delivering an EPS of $10.49. For the trailing twelve months ended June 30, 2026, revenue stood at $897.5M with a profit margin of 60.3% and an operating margin of 78.2%. In the latest quarter, revenue grew 31.2% year-over-year while quarterly earnings advanced 32.7%.

As of June 30, 2026, TPL held $248.6M in cash and short-term investments against total debt of $15.5M, resulting in net cash of $233.1M. The debt-to-equity ratio is 0.01 and the current ratio is 4.55. Operating cash flow reached $545.9M in FY2025, supporting free cash flow of $486.4M. During FY2025, cash deployment included $59.5M in capital expenditures, $147.8M in dividends paid, and $23.2M in share buybacks. The share count decreased 1.0% over five years.

TPL trades at a trailing P/E of 44.8x and a forward P/E of 37.7x, both above the median of its S&P 500 Energy peers (17.8x trailing and 13.4x forward). Its EV/EBITDA stands at 30.4x compared to the peer median of 7.9x, and its price-to-sales of 27.0x exceeds the peer median of 2.1x. Over the past year, the stock returned 12.9%, trailing the S&P 500 return of 16.8%. Over a 5-year period, TPL gained 174.2%, outperforming the S&P 500 return of 83.0%.

TPL pays a quarterly dividend with an annual forward payout of $2.40, reflecting a dividend yield of 0.68% and a payout ratio of 20.5%. The company has paid dividends for 46 consecutive years, though its 5-year annualized dividend growth stands at -5.9%. The most recent ex-dividend date was September 1, 2026.

Wall Street coverage includes 1 Strong Buy and 1 Strong Sell rating. The mean price target is $443.00, which is 26.2% above the last close of $350.92. For FY2026, analysts estimate revenue of $1.02B and EPS of $9.24, representing 32.6% EPS growth. For FY2027, 2 analysts project revenue of $1.14B and EPS of $10.20. TPL has beaten EPS estimates in all 4 of its last 4 quarters, with the next earnings release scheduled for November 4, 2026.

This page is an AI-written research summary of Texas Pacific Land Corporation (TPL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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